There is “no reason” for the Big Six energy giants to raise their standard variable tariffs this winter because their hedging strategies should insulate them from rising wholesale prices, leading analysts have said. Amid mounting speculation over a possible round of price rises, consultants Cornwall Energy said their analysis showed major suppliers should be able to hold off for several months – but warned that electricity price rises of up to 10pc before winter 2017-18 were highly likely. Leading challenger brands such as Ovo Energy have increased the cost of their one-year fixed-price deals in recent weeks, blaming rising wholesale prices, while energy giant SSE has warned of wholesale and green levy costs putting “pressure” on all suppliers. But Cornwall’s analysis suggests the hedging strategies used by the Big Six – which typically buy energy for their standard tariffs well in advance – should help insulate them for now.
Telegraph 17th Nov 2016 read more »